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Life Tech Posts 1 Percent Revenue Decline

NEW YORK (GenomeWeb News) – Life Technologies reported after the close of the market Wednesday that its second-quarter revenues declined 1 percent year over year, falling short of Wall Street estimates on the top line.

The Carlsbad, Calif.-based genetic analysis products firm reported total revenues of $945.8 million for the three months ended June 30, compared to $949.3 million for the second quarter of 2012. On average, analysts covering the firm expected revenues of $952.1 million.

Life Tech said that excluding the impact of currency its revenue were up 1 percent for the quarter.

Sales of its research consumables increased 1 percent year over year to $405 million, while genetic analysis revenue decreased 4 percent year over year to $341 million. The firm said that an increase in Ion Torrent sales was offset by lower CE sales and an expected decline in sales for its SOLiD sequencers and related products. Life Tech's applied sciences revenues were up 2 percent to $198 million.

Life Tech reported net income of $126.6 million, or $.72 per share, compared to $122.4 million, or $.67 per share, for Q2 2012. On a non-GAAP basis, its net income was $172.6 million, or $.98 per share, beating the consensus Wall Street estimate of $.96 per share.

The firm's R&D spending increased 4 percent to $88.6 million from $84.8 million, while its SG&A expenses also climbed 4 percent to $276.4 million from $266 million. It also reported business consolidation costs of $28.3 million, compared to $9.4 million for such costs in Q2 2012.

Life Tech is in the process of being acquired by Thermo Fisher Scientific in a $13.6 billion deal announced in April.

Life Tech will hold a special meeting of stockholders on Aug. 21 to vote on the transaction.